Personal Income Increases in February

Personal income increased 1.1 percent in February after decreasing 3.7 percent in January. The January decrease reflected accelerated bonus payments and dividend distributions in December in anticipation of income tax changes.

Current-dollar disposable personal income (DPI), after-tax income, increased 1.1 percent in February after decreasing 4.0 percent in January. The expiration of a temporary reduction in payroll taxes boosted employee contributions for government social insurance in January. Excluding all special factors, DPI rose 0.4 percent in February after increasing 0.1 percent in January.

Real DPI, income adjusted for taxes and inflation, increased 0.7 percent in February after decreasing 4.0 percent in January.

Real consumer spending, spending adjusted for price changes, increased 0.3 percent in February, the same increase as in January.

PCE prices increased 0.4 percent in February after remaining flat in January.

Personal saving rate
Personal saving as a percent of DPI was 2.6 percent in February, compared with 2.2 percent in January.

To learn more about personal income and outlays, read the full report.